Recapitalization & Restructuring
The client is a franchisee of a well-known, premier experiential learning and child physical development center.
The client had a heavy debt load and could no longer meet their financial obligations. A declining economy created a significant decrease in customer base and a steady increase of cash shortfalls, also leaving the owners with significant personally guaranteed liabilities outstanding. The franchise owner was in need of a cash infusion to restructure debt, increase liquidity and eliminate personal strain.
Business Capital was brought in by the client’s legal counsel who determined the company and guarantors would be best suited to restructure out of court. BizCap worked with each creditor individually until each claim was resolved and debt was reduced by over 80%. This paved the way for Business Capital to refinance the franchise with a competitive credit facility. The Firm’s experience and understanding across all industries and deal types, combined with superior credit acumen, allowed the client to successfully achieve their business goals.